Name and Location
Kangala thermal coal project, Mpumalanga, South Africa.

Client
Universal Coal.

Project Description
Kangala has proven reserves of 20.8-million tonnes of thermal coal. It comprises three properties – Wolvenfontein, Middelbult and Modderfontein.

Saleable coal tonnages averaging 2.1-million tonnes a year will be achieved from a 2.4-million-tonne-a-year run-of-mine (RoM) production rate over the life of the mine, which is forecast at 8.5 years.

Value
A$46.8-million. All funding for the project has been secured.

Duration
Kangala will begin production in February 2014.

Latest Developments
Universal Coal is on track to reach maiden production at its flagship Kangala coal mine, in the Witbank region, by February next year.

Cold commissioning of the Kangala colliery’s crushing and screening plant has started, with assembly well under way.

Hot commissioning of the plant is due to start in December this year.

The boxcut, which started in the first week of July, remains on schedule, and the first RoM coal scheduled from the pit will be used for the base of the product stockpiles, preventing contamination at a later stage, while the remaining boxcut coal will be used to commission the crushing and screening plant.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Universal reports that the A$46.8-million project remains on budget and is set to deliver its first production by February.

Contact Details for Project Information
Universal Coal, tel +27 12 460 0805, fax +27 12 460 2417 or email info@universalcoal.co.za.